Environmental stewardship
We are committed to creating a future that builds upon our responsibility to provide safe, reliable and cost-effective energy that improves our customers’ lives.
As part of our ongoing efforts to reduce emissions, we continued to make strong progress against our targets. By 2025, we achieved a 43% reduction in electric utility emission intensity compared to our 2005 baseline, meeting our 2030 goal five years early. This progress includes an 8% reduction since 2024, largely driven by increased renewable energy procurement to support data center operations, alongside temporary coal plant outages.
Reported natural gas distribution system emissions reduced by 26% since 2022 from unprotected steel pipeline replacements, expanded leak detection and repair, and data integrity improvements, making significant progress towards our 2035 net zero target. Emissions from transfer stations, our previously largest emission source, declined 53% since 2024 through targeted expanded leak survey and repair initiatives.
Natural gas emission reduction target
We have committed to achieving net zero emissions for our natural gas distribution system by 2035. We've made significant progress, reducing reported emissions 25% since 2022. We are excited to provide updates and information about our initiatives and planned strategies to achieve this goal.
Operate a net zero emissions distributions system
In 2022, we set a net zero target by 2035 for our natural gas distribution system, leveraging the company’s focus on safety and system integrity, while advancing current strategies to include expanded damage prevention and advanced leak detection. Our comprehensive strategic timeline outlines the three implementation phases to achieve this target.
Continue best management practices
Pipeline replacement: We’re continuing to replace all remaining unprotected steel pipe with lower emitting materials, including plastic and protected steel.
Expanded leak detection: By collecting detailed emission data from our system, we can identify new opportunities for reductions. In addition to our regular systemwide leak surveying, we conduct additional leak surveys of our aboveground natural gas equipment to help identify and locate fugitive emissions from our system.
We will continue to expand these surveys, both by location and rotational frequency, positioning us to address leaks quickly.
Damage prevention: Our corporate goal to reduce third-party line hits to 1.5 (or below) hits per 1,000 excavations (HPT) will be achieved through the expansion of excavation site visits, using analytics with risk modeling to identify high-risk locations and a continued focus on employee, customer and system safety.
Advanced emission mitigation
Furthering damage prevention: By targeting best in class for third-party damage line hits, we would further reduce system gas releases.
Pursue advanced monitoring and leak detection (AMLD): Systems can detect low concentrations of natural gas leaks and pair with aerial mapping abilities to pinpoint leak locations. The ability to survey large portions of a system quickly and precisely allows natural gas operators to prioritize repairs based on magnitude, analyze trends across the system and continue to improve operational safety and reliability.
Achieve net zero emissions
Integrate low carbon fuels: We will continue to advance low carbon fuels such as renewable natural gas (RNG) by expanding RNG blending on our system and obtaining the certifications for the emission displacement.
Use carbon offset credits: Quantifiable and certified offsets can be used to displace a balance of emissions from sources such as renewable energy development, landfill methane avoidance and destruction, energy efficiency and improved forestry management.
Electric emission reduction targets
We continued to make meaningful progress toward our goal to reduce electric utility emission intensity 40% by 2030 and 70% by 2040, achieving a 43% reduction from our 2005 baseline as of 2025, meeting our 2030 target five years ahead of schedule. This reflects an 8% reduction since 2024, driven primarily by continued growth in renewable power purchase agreements supporting data center load, as well as temporary reductions in coal plant operations related to outages.
While these short-term operational factors contributed to the year-over-year improvement, emission intensity is expected to fluctuate as operations normalize and customer demand continues to evolve. Our long-term strategy remains unchanged: investing in operational improvements, a diversified mix of energy solutions and emerging technologies to deliver reliable, cost-effective energy while advancing a responsible energy transition. By 2030, our owned and purchased renewable energy and storage resources are expected to comprise nearly half our total energy capacity resources.
Pathway to our energy future
We're transitioning to our energy future through the addition of low- or zero-carbon generation sources and fossil fuel plant retirements or conversions. Our approved resource plan for Colorado includes the addition of approximately 200 MW of solar energy and 50 MW of battery storage by 2030. We will be positioned to achieve our greenhouse gas (GHG) reduction goals, without reliance on future technologies, through the conversion of the Neil Simpson II coal plant to include natural gas as a dual-fuel unit completed in 2025, conversion or retirement of our remaining coal and diesel power plants and the addition of renewable energy resources and storage.
Electric utility renewable energy
A key strategy to achieving our greenhouse gas (GHG) reduction goals is to own, operate and purchase renewable energy. Over the past decade we have added 202 MW of owned and operated wind generation capacity across our service territory. In addition to company owned and operated renewable energy sources, we leverage PPAs to meet customer needs and help achieve our GHG reduction goals. Our first large-scale solar PPA, Fall River Solar, was brought online in 2023. The energy from this 80 MW project located near Oelrichs, South Dakota, is used to serve Black Hills Energy customers throughout western South Dakota and eastern Wyoming. Roundhouse Renewable Energy Wind and South Cheyenne Solar, PPAs brought online in 2023 and 2024, respectively, are serving growing data center loads. Our total renewable portfolio of owned and contracted renewable energy represents 37% of our generation capacity and helps to achieve our GHG reduction goals and serve our customers’ needs.
Black Hills Energy's owned renewable portfolio
29 MW: Busch Ranch I
This project provided an opportunity to develop a sixth renewable energy zone in Colorado as part of SB-100 legislation. This renewable energy zone enabled the development of Busch Ranch II and Peak View wind projects. This project supports Colorado’s goals to reduce greenhouse gas emissions associated with retail electric sales 80% by 2030 as compared to 2005.
59.4 MW: Busch Ranch II
Completed in 2019, this wind facility powers 28,000 homes and is a milestone in achieving 30% renewable energy for our Colorado customers.
60.8 MW: Peak View
Located in southern Colorado, this renewable energy investment serves more than 94,000 customers and was used as a filming location for the 1991 western Conagher, with scenes shot at a cabin adjacent to one of our wind turbines.
52.5 MW: Corriedale
Our newest renewable facility located on King Ranch near Cheyenne, Wyoming, is owned by our South Dakota and Wyoming electric utilities, and has the highest energy produced per MW of capacity to date for our wind facilities. This facility is named after the Corriedale breed of sheep, a tribute to King Ranch’s role in the development of the Wyoming sheep industry. Corriedale is strategically located in southeast Wyoming to capitalize on one of the highest wind energy density concentrations in the country.
Black Hills Energy's renewable power purchase agreements
- 60 MW: Platte River Power Authority Spring Canyon Wind*
- 30 MW: Duke Energy Silver Sage Wind
- 12 MW: Platte River Power Authority Silver Sage Wind
- 30 MW: Duke Energy Happy Jack Wind
- 4 MW: City of Spearfish Hydro
- 80 MW: Fall River Solar
- 106 MW: Roundhouse Renewable Energy Wind**
- 150 MW: South Cheyenne Solar**
*Renewable attributes are not retained by Black Hills Colorado Electric.
**Renewable energy and associated environmental attributes for these projects are for the benefit of and consumed by Cheyenne Light Fuel and Power customers.
